A joint report between the GLA group and London Councils calling on government for a fair deal for London in future government spending reviews.
Investing for Recovery
A fair deal for London
Investing for Recovery – a new deal for London, is a joint report by the GLA group and London Councils, working in the interests of all of London’s boroughs. The report makes clear London’s dominant economic role; heralding the capital as the engine room, driving the UK into recovery, and makes the claim for fairer funding.
The report bids for a fairer funding model that takes into consideration London’s high turnover of population, resulting strains on public services, and the capital’s intractable social problems, including poverty levels and insufficient housing.
“Londoners already do more than their fair share. We pay much more in tax than we get back in public expenditure. We are driving the economy into recovery. Londoners are, on average, 30% more productive than the rest of the UK, plus those who leave take their skills and experiences with them, honed in the world’s business capital.
“London has consistently replenished the Treasury coffers over the last twenty years. What we want is a fair deal, only a fair deal, and will give a great deal back to the nation.”
Strong growth in London benefits UK
Already punching above its weight, with just 12% of the country’s population, London contributes more to the Treasury than any other region; its economy is greater than that of Scotland, Northern Ireland, Wales and the East Midlands combined. To maintain its position, the capital needs continued investment, but with greater freedom for the boroughs to decide how money is spent.
In anticipation of future spending reviews and public finance constraints, Investing for Recovery outlines why strong economic growth in the capital benefits the whole country and argues the case for:
- Funding to be maintained by central government for key investments that will help the country as well as the capital, especially Crossrail, the rebuilding of the Underground and skilling our population to compete in a globalised economy.
- Fairer revenue funding to enable London’s leaders to tackle persistent social problems where London’s needs remain high relative to the country as a whole. London’s population is growing, and will hit 8.1 million by 2016; and the costs of its public services remain higher than the rest of the country by around 20-30%.
- And, in certain areas, changes to the distribution of national funding where London’s social and other needs remain more challenging than in the rest of the country.
